# MS6014 M2A2 – The time Value of Money – Preparing for Home Ownership

Assignment 2: The Time Value of Money—Preparing for Home Ownership

Upon graduating from Argosy University with a degree in Finance, John Simple found a great job as a banking officer with Capital Two Bank in Dallas. Although he and his partner Joan had several college loans that required payments, their goal was to set aside funds for the next five years so that they could get out of the small apartment in Irving, Texas. After reviewing the listings in the areas surrounding DFW and speaking to their bosses about possible transfers, John and Joan decided upon Plano as their desired future location for a home.

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
MS6014 M2A2 – The time Value of Money – Preparing for Home Ownership

Based on house prices they received from a local realtor, they determined that the home they needed currently costs around \$178,000 which includes 2% closing costs. To avoid paying Private Mortgage Insurance, John and Joan need to make a down payment of 20%. Since they are saving for the potential purchase, it will be five years before they buy the home. This gives them time to save for the down payment, moving, and furniture costs, which they estimate will be 10% more than the required down payment. They also expect home prices in Plano to continue to increase each year at 2.5% per annum rate as presented by their realtor.

John, being the finance graduate, wanted to adequately prepare for their future purchase and told Joan that he would take all this information and present an overview of how much would be required once their estimated purchase date became a reality. In addition, John would show how much money they needed to save each month in their house investment account at E-Trade, which averages 5% annual return.

Write a 2–3-page paper where you answer the questions above. Make sure you identify the question and then respond showing all calculations using math or Excel functions.

1. What is the estimated purchase price of the home in 5 years?
2. How much would need to be saved for the down payment?
3. How much would need to be saved for closing, moving, and furniture costs?
4. Considering that they have \$10,000 already saved (half of which was provided by Joan’s parents as a wedding gift), how much money do they need to save each month to reach their goal?
5. Suppose John could change investment plans at E-Trade and earn an additional 1.5% per annum without additional risk, how much money do they need to save each month to reach their goal? How much in investment dollars would they save by increasing their investment percentage?

Submission Details:

If you use Microsoft Excel, please attach a copy of your worksheet so your instructor can review the work. In addition, explain the theory used in solving this case using no less than 2 outside references. Apply APA standards to citation of sources.

• By Wednesday, June 21, 2017, save your report as M2_A2_lastname_firstinitial.doc and upload it to the M2 Assignment 2 Dropbox. For example, if your name is John Smith, your document will be named SmithJ_M2_A2.doc.

## Calculate the price of your order

Select your paper details and see how much our professional writing services will cost.

We`ll send you the first draft for approval by at
Price: \$36
• Freebies
• Format
• Formatting (MLA, APA, Chicago, custom, etc.)
• Title page & bibliography
• Amendments to your paper when they are needed
• 275 word/double-spaced page
• 12 point Arial/Times New Roman
• Double, single, and custom spacing

Our custom human-written papers from top essay writers are always free from plagiarism.

Your data and payment info stay secured every time you get our help from an essay writer.

Your money is safe with us. If your plans change, you can get it sent back to your card.

## How it works

1. 1
You give us the details
Complete a brief order form to tell us what kind of paper you need.
2. 2
We find you a top writer
One of the best experts in your discipline starts working on your essay.
3. 3
You get the paper done

## Samples from our advanced writers

Check out some essay pieces from our best essay writers before your place an order. They will help you better understand what our service can do for you.

## Perks of our essay writing service

We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.

• Swift delivery
Our writing service can deliver your short and urgent papers in just 4 hours!
• Professional touch
We find you a pro writer who knows all the ins and outs of your subject.
• Easy order placing/tracking
Create a new order and check on its progress at any time in your dashboard.
• Help with any kind of paper
Need a PhD thesis, research project, or a two-page essay? For you, we can do it all.
• Experts in 80+ subjects
• Calculations and code
We also do math, write code, and solve problems in 30+ STEM disciplines.

• ### What if I’m dissatisfied with the paper I get?

The average quality score at our professional custom essay writing service is 8.5 out of 10. The high satisfaction rate is set by our Quality Control Department, which checks all papers before submission. The final check includes:
• Compliance with initial order details.
• Plagiarism.
• Proper referencing.
If for some reason we happen to leave a mistake unnoticed, you are invited to request unlimited revisions of your custom-written paper. For more information, check our Revision Policy. We will do our best to make your experience with Familiar Essays enjoyable.
• ### I need an essay on the same day. Is it something you can do?

Sure. Our writing company offers a fast service with an 8-hour deadline for orders up to master’s level. Make sure to specify the deadline in the order form and our writers will write a paper within the indicated timeslot. Just proceed to submit your requirements here Once you order a custom-written essay, our managers will assign your order to the well-suited writer, who has the best skills and experience for preparing your specific assignment. You can also request one of these extra features:
• Choose the Writer’s Samples option – study 3 randomly-provided pages from orders that have been written by the assigned writer.
• Request a specific writer – choose an academic writer from the dropdown list in the order’s form (optional for returning customers).
You can be sure that your custom writing order will be accomplished by one of our 400+ professional academic writers. They all pass a series of tests to prove their writing prowess and hold the reputation of being the most professional in the industry. Want to make sure writer’s skills match your needs? Get more details on how to choose the appropriate author.
• ### How can I be sure your writing service is not a scam?

We understand that a shade of mistrust has covered the paper writing industry, and we want to convince you of our loyalty. Apart from high-quality writing services, we offer:
• The chances of students to boost writing skills in a quick and effective way.
• The opportunity to manage studies and free time in an enjoyable manner.
• The possibilities to improve overall academic performance.
Our custom writing company has been working for more than 12 years and always puts quality and clients’ needs first. Our operations are legally documented, we are easily accessible online and offline,
• ### Is it legal to use your professional writing service?

Yes. Custom writing help is not prohibited by any university or college. It’s a 100% legal way of getting professional assistance with paper writing. Hiring writers from an essay writing company is in many ways similar to consulting a tutor – we help you solve the writing issues at hand.